In the case that I used data ceterning option to run the multilevel analysis, what would be a more appropriate specification for the multilevel construct? In my model I have employee attitude as the multilevel construct wherein leadership practices influence employee attitudes which in turn impact on the group level performance: leaderhip practices --> employee attitudes --> performance outcomes at group level

I am using the data centering method and specifying the model such that employee attiude (Attitude1-Attitude6) is not listed in both within and between variables. I also have a command of 'Centering = Grandmean (Attitude1-Attitude6)' Is that correct?

Let me assume that "leadership practices" is a level 2 variable just like "performance at group level". To model the two arrows you show, "employee attitudes" would have to refer to a level 2 construct, and the arrows correspond to regressions on level 2. Here, the attitude indicators are not listed on the Within or Between lists. Grandmean centering or not of those attitude indicators doesn't matter.

Sorry I was not clear about the leadership construct. In my study, 'leadership practices' is the individual level construct which is assumed to have influenced on 'employee attitudes' at the individual level. This attitudinal effect is hypothesized to have aggregate effect on performance outcomes at group level.

The 'employee attitudes' is used in both the individual and unit level analysis and hence, it is not listed on the Within or Between lists.

Given this model specification, do I need to have a command line of 'Grandmean centering' for attitude1-attitude6 variables?

Also, I would like to know the implication of using data centering method on the multilevel model analysis. Would the result be more robust if I don't center data and specify some controls in the model instead?

I am very confused by this. Without adding the centering command are the means of my level 1 variables already centered by default? I am clearly missing something. Please help! I cannot interpret my results with means of zero.